The Nevada Gaming Control Board (NGCB) is hoping to consolidate its three separate lawsuits brought by Kalshi, Crypto.com and Robinhood into one decision, which would all present oral arguments to the Ninth Circuit Court in April.
The lawsuits center around sports event contracts in Nevada, resulting in contentious legal proceedings between the three prediction market companies and the NGCB. Kalshi, Crypto.com and Robinhood are suing the NGCB after receiving cease and desist orders for offering sports event contracts in Nevada.
NGCB wants plaintiffs to team up for oral arguments
The NGCB is facing three lawsuits, all before the same District Court judge concerning the same legal issues, leading to a request by the regulator to consolidate the oral arguments.
“Each appeal presents the same basic questions—whether the appellant is likely to succeed on the merits and whether the balance of equities supports preliminary injunctive relief,” reads the NGCB’s motion to consolidate the oral arguments. “Although there are some slight factual differences among the parties, their legal arguments are almost identical, the alleged harms asserted in support of injunctive relief are materially similar, and the asserted state and public interests are the same.”
The NGCB argues that consolidated oral arguments would promote “judicial efficiency” and prevent any repetitive presentations of legal issues raised by the plaintiffs. A consolidated oral argument also avoids any issues with having multiple hearing panels.
“Any factual differences relevant to the balancing of the equities can, if necessary, be addressed at oral argument,” continues the motion.
The defendants in the case, including the Nevada Resort Association, are recommending Kalshi, Crypto.com and Robinhood to have 30 minutes for their oral arguments. Kalshi, Crypto.com and Robinhood have consented to consolidated oral arguments, but with conditions.
Kalshi and Robinhood have proposed that each side have 45 minutes for oral arguments, while Crypto.com will only consent to an oral argument if each side has between 45 and 60 minutes to make their case.
Nevada judge rules against offering sports event contracts
Kalshi, Crypto.com and Robinhood filed requests for preliminary injunctions and temporary restraining orders to keep their sports event contracts alive in Nevada. Kalshi was momentarily allowed to keep its sports event contracts alive in Nevada after being granted a preliminary injunction by Judge Andrew Gordon. Meanwhile, Gordon completely denied injunction requests from Crypto.com and Robinhood, leading the prediction market platforms to pull their sports event contracts out of the state. Gordon revisited the preliminary injunction granted to Kalshi after his ruling against Crypto.com and Robinhood and eventually dissolved Kalshi’s injunction.
Kalshi, Crypto.com and Robinhood all separately appealed the decision regarding the injunction. Kalshi most recently asked the Ninth Circuit to issue an emergency ruling to stup the injunction from taking effect while the cases proceed.
Nevada regulator takes Polymarket to court
The NGCB is being sued by Kalshi, Crypto.com and Robinhood but the regulator filed a suit of its own against Polymarket for offering “unlicensed wagering in violation of Nevada law.”
The case makes Nevada only the second state where a government agency or leader has taken action against a prediction market that offers sports event contracts. Last year, Massachusetts Attorney General Andrea Joy Campbell filed a suit against Kalshi.
